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HomeMy WebLinkAbout01 - MinutesFebruary 14, 2017 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Planning Session (Special Meeting) January 14, 2017 1. WELCOME - 9:00 a.m. Present: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon 2. PUBLIC COMMENTS ON NON -AGENDA ITEMS Bill Dunlap led the Pledge of Allegiance. Jim Mosher commended the City Council for setting goals, but su ed a longer vision for Newport Beach, such as a 110 -year plan. FISCAL PICTURE UPDATE Finance Director Matusiewicz provided a PowerPoint presentation outlining the FY 2015-16 year-end revenues, including property tax, sales tax and Transient Occupancy Tax (TOT). In response to Council Member Dixon's questions, Finance Director Matusiewicz reported that the City receives 16¢ on the dollar of the 1% property tax. He anticipated minimal impact from the reduction of sales tax. Finance Director Matusiewicz explained the General Fund and reported that it ended with a $10 million surplus. He presented the budget preparation cycle and discussed budget challenges, including pension funding and Seawall and Harbor Master Plan. In response to Council Member O'Neill's question, Finance Director Matusiewicz explained general liabilities and the $1.5 million shortfall. Council Member Dixon discussed the Capital Improvement Program (CIP) and anomaly of only $5 million of the $60 million coming from the General Fund. City Manager Kiff explained the impact of the Ca1PERS discount rate change and range of alternatives for payment on unfunded liability. Finance Director Matusiewicz stated the public could access presentations the Finance Committee received on pension issues at newportbeachca.gov/pensions. Council Member O'Neill requested information on employee contributions. City Manager Kiff stated the employees paid $9 million of the $40 million. Council Member O'Neill emphasized that $8 million of the $15 million in normal costs were paid by the employees. Council Member Dixon stated the pension expenses represented 16.34% of operating expenses. City Manager Kiff stated it was approximately 11% or 12% in 2012. He reminded Council that the City voluntarily increased its percentage with the Fresh Start program. City Manager Kiff highlighted Harbor needs and possible allocations, and indicated the City was in good shape, but provided recommendations regarding pension funding. He also discussed the case in Marin County requiring reasonable pensions for employees. In response to Mayor Muldoon's question, City Manager Kiff discussed repair and/or replacement of a portion of seawall on Collins Island and the placement of a 6 -inch cap on the south side of Bayfront, both items were included in the budget, and the need to plan for future repairs. Mayor Muldoon suggested setting aside surplus Volume 63 - Page 170 City of Newport Beach Planning Session (Special Meeting) January 14, 2017 for future seawall repairs and asked how to budget for the future. City Manager Kiff agreed with his suggestion to set aside $5 million now, and add $1 million each year for the next 15 years. He suggested an incremental change in height, if necessary. Nancy Skinner asked if the surplus was different from reserves. City Manager Kiff explained that reserves were the amount set aside for emergencies and surplus was annual savings. Dennis Baker asked if there were Federal funds available for the seawall repairs. City Manager Kiff indicated that staff continues to look for funds for seawall repair. George Schroeder discussed the projected Ca1PERS rates and City's contribution. He expressed concern with capital improvements being impacted due to unfunded pension liability. Nancy Gardner suggested planning for sea level rise for ocean facing properties, not just bay residences. Lee Pearl discussed potential funding for seawall improvements and offered to work with the City on Federal and State funding sources. Brian Ouzounian suggested the City hire a consultant to fundraise for seawall repairs on Balboa Island. Jim Mosher expressed concern about the public's understanding of and ability to track the City's financial state and suggested warrants and claims be more visible to the public. He questioned whether the Enterprise Resource Program (ERP) would allow the public to review the budget line items. He asked what transparency and visibility would be coming in the next year. City Manager Kiff discussed the status of the ERP and software that would allow data analysis. 4. RECESSED/RECONVENED Mayor Muldoon recessed the meeting at 10:00 a.m. and reconvened the meeting at 10:20 a.m. with all members of the City Council present. 5. PENDING CAPITAL AND OTHER PROJECTS Public Works Director Webb utilized a PowerPoint presentation to highlight the major projects under construction, projects nearing construction, projects in design, and projects planned for next fiscal year. Mayor Muldoon requested thets associated with the projects. Council Member O'Neill reminded residents that the costs could be found in the FY 2015-16 CIP program document. In response to Bob McCaffrey's question, Public Works Director Webb discussed replacement of the Corona del Mar library and fire station facilities. Council Member Dixon asked about the loss of parking from the Banning Ranch project. Public Works Director Webb confirmed that parking needs to be addressed through the use of Lower Sunset View Park. In response to Council Member O'Neill's question, Public Works Director Webb explained that potable water was funded through water utility. In response to Council Member Dixon's question, Public Works Director Webb discussed the replacement of street signs. Public Works Director Webb discussed possible projects for next fiscal year and during the FY 2017-18 CIP. Council Member Herdman discussed the project list and limitations on completing all projects. Volume 63 - Page 171 City of Newport Beach Planning Session (Special Meeting) January 14, 2017 Council Member Avery asked if the Central Avenue pier could be completed prior to summer. Public Works Director Webb stated the permitting process had been difficult, but the goal was to complete the pier by summer. He also discussed the boat sizes that would be able to utilize the pier. In response to Council Member Peotter's question, City Manager Kiff explained the Facilities Finance Plan (FFP) and review by the Finance Committee. Council Member Peotter discussed traffic in the City and suggested the issue be managed by a single director to advocate for transportation improvement. He suggested the 2% development fee, that is currently dedicated for art, be used for traffic improvements. Mayor Pro Tem Duffield expressed enthusiasm for harbor improvements. Council Member Herdman encouraged involving the Balboa Island residents and merchants' association in any modification on Balboa Island. Council Member Avery urged continued efforts for the West Coast Highway Landscape Rehabilitation project. Community Development Director Brandt utilized a PowerPoint presentation to review the certification of the Local Coastal Program (LCP_, Mariners' Mile Master Plan, and planning projects under construction). In response to Mayor Muldoon's question, Community Development Director Brandt discussed the process to update the General Plan, including community input. Council Member Dixon asked about the timeline if the General Plan Update were to go before the voters. Community Development Director Brandt clarified that voter approval was only required if there was a change in City's land use intensities and densities. In response to Council Member Peotter's questions, Community Development Director Brandt reported that she anticipated the Circulation Element, Safety Element, Land Use Element, and Harbor Element would be considered in the update. She discussed the 2006 comprehensive General Plan Update process. Council Member Dixon clarified that the update would need budget approval. Nancy Skinner asked the status of Bayside Drive. City Manager Kiff explained the round -about design status. In response to Bob McCaffrey's question, Public Works Director Webb stated $10,000 to $15,000 had been spent on conceptual designs. Brian Ouzounian suggested retaining funds for the Balboa Theater. Dennis Baker complimented the Public Works Department for successful grant applications. He also commended Council for considering another review of the General Plan. Joy Brenner discussed the history related to the Corona del Mar fire station and library project. She discussed the importance of public resources and the value of the library. George Schroeder discussed neighborhood enhancement committees and the need to improve streetscapes. Lee Pearl commended staff on successful community outreaches and the Police Department for its assistance during the Boat Parade. He presented his CIP suggestions, including Marine Avenue dovetailing into residential streets, reducing flood insurance, facilities at Ruby Beach, a community room at the Fire House, and improvements on Bayside Drive. Bernie Svalstad, Corona del Mar Business Improvement District, stated they will be suggesting a monument sign identifying Corona del Mar's entrance. Volume 63 - Page 172 City of Newport Beach Planning Session (Special Meeting) January 14, 2017 Paul Watkins, Board of Library Trustees member, urged Council to stay the course with Fire Station No. 5 and the library. Jim Mosher believed it was unrealistic to revamp the General Plan in 8 to 12 months and suggested incremental changes be made. Jill Johnson -Tucker, Chair of the Board of Library Trustees, stated the library improvements were made due to the need at the fire station. She suggested rebidding the project and keeping the library as is. 6. GUIDANCE TO CITY STAFF Mayor Pro Tem Duffield expressed gratitude to IT staff for website improvements and the MyNB app. Council Member Dixon expressed her continued support for Balboa Boulevard landscape improvements and traffic synchronization. Council Member Peotter requested that the next part of the Taxpayer Protection Act remain on the agenda. He encouraged improvements for transparency, implementing a business license fee, and creating a Harbor Master Plan. Council Member O'Neill thanked Mayor Muldoon, staff and the public for their input. He suggested continued emphasis on restrictive fund use going into community development, such as the Senior Housing Assistance Program (SHARP) and Community Development Block Grant (CDBG) funds, following Council Policy F-5 regarding surplus, reviewing the FFP, the need for a new rate study in the Wastewater Master Plan, and conducting study sessions on debt policies, pension liabilities, and the Harbor Master Plan. Council Member Herdman complimented staff on the workshop. He discussed the need for election reform to allow the City Attorney to enforce election laws and codes. Mayor Muldoon suggested that Council address the FFP separately. He agreed with dedicating 50% of the surplus to unfunded pension liability and 50% to seawall needs. He also suggested using property sale proceeds toward the unfunded pension liability. He encouraged large community outreach for any General Plan Update. 7. ADJOURNMENT - 11:56 a.m. The agenda was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on January 12, 2017, at 3:20 p.m. City Clerk Mayor Volume 63 - Page 173 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting January 24, 2017 I. ROLL CALL - 6:00 p.m. Present: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon II. PUBLIC COMMENTS Jim Mosher expressed appreciation for the upcoming City Council study sessions and voiced his concerns about the lack of study sessions in the past City Attorney Harp announced that the City Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. III. CLOSED SESSION - 6:02 p.m. A. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9(d)(4)): 1 matter B. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives: Dave Kiff, City Manager, Carol Jacobs, Assistant City Manager, and Barbara Salvini, Human Resources Director; Negotiators. Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (NBEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Newport Beach Lifeguard Management Association (NBLMA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Employee Association (NBPTEA); and Part -Time Employee Association of Newport Beach (PTEANB). IV. RECESSED V. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VI. ROLL CALL Present: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon VII. CLOSED SESSION REPORT City Attorney Harp reported that there were no reportable actions taken. Volume 63 - Page 174 City of Newport Beach Regular Meeting January 24, 2017 VIII. PLEDGE OF ALLEGIANCE - Council Member O'Neill IX. INVOCATION - Rabbi Young, Congregation B'nai Tzedek X. NOTICE TO THE PUBLIC XI. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEM) Mayor Muldoon requested an item be placed on a future agenda to amend the City Council Policy on invocations. Council Member O'Neill encouraged residents to take advantage of Restaurant Week. He announced the upcoming Legally Blond Spring Musical at Newport Harbor High School and official reopening of the Davidson Field on September 8, 2017. He reported that the Sage Hill School Aquatics Center will open on April 18, 2017. He discussed crime statistics and stated he enjoyed Speak Up Newport. Council Member Dixon presented a PowerPoint presentation of the Balboa Village gateway sign ribbon cutting ceremony and other community events and services at Balboa Village. Council Member Herdman thanked staff for painting "golf cart parking" on Balboa Island streets. He complimented staff on the Balboa Village gateway sign ribbon cutting ceremony. He stated he began discussions on the redesign of Marine Avenue on Balboa Island and attended the Balboa Island Merchants Association Meeting. He announced an upcoming, by invitation only, meeting with those impacted by the traffic calming redesign of Bayside Drive. r Council Member Avery stated he was initially skeptical of the Balboa Village sign, but is now complimented and appreciated it. XII. PUBLIC COMMENTS ON CONSENT CALENDAR Council Member Peotter noted his support for Planning Commission meetings being videotaped (Item 12). f r City Manager Kiff suggested amending the recommended action on Item 12 to direct staff to videotaping the Planning Commission meetings and correcting a Scribner's error in the City Council Policy. Nancy Skinner indicated support for recording and broadcasting Planning Commission meetings. Jim Mosher thanked the City Council for videotaping Planning Commission meetings. He modified his written comment relative to City Council Policy A-13, now agreeing with the prohibition of grandstanding. XIII. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the January 10, 2017 City Council Meeting [100-2016] Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. Volume 63 - Page 175 City of Newport Beach Regular Meeting January 24, 2017 Second Reading of Ordinance to Temporarily Extend the Nonexclusive Solid Waste Franchises [42/100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Conduct second reading and adopt Ordinance No. 2017-1, An Ordinance of the City Council of the City of Newport Beach, California, Temporarily Extending Nonexclusive Solid Waste Franchises from March 1, 2017 to November 8, 2017 to Ensure Adequate Provision of Solid Waste Collection Services within the City of Newport Beach. RESOLUTIONS FOR ADOPTION 4. Dissolution of the General Plan/Local Coastal Plan Implementation Committee [24/100- 2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2017-5, A Resolution of the City Council of the City of Newport Beach, California, Dissolving the General Plan/Local Coastal Plan Implementation Committee. CONTRACTS AND AGREEMENTS 6. Approval of Amendment No. 1 to Professional Services Agreement with Fountainhead Consulting Corporation for Park Avenue Bridge Replacement Project Construction Management Services (151120) (C-7072-1) [38/100-2016] a) Find that construction management and inspection services are not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines. For the construction, a Mitigated Negative Declaration (MND) was adopted by the City Council on November 24, 2014; and b) Approve Amendment No. 1 in the amount of $419,896.13 to the Professional Services Agreement with Fountainhead Consulting Corporation for construction engineering/ management and inspection services for a new not -to -exceed total price $1,264,643.87; and authorize the Mayor and City Clerk to execute the Amendment. Council Member Herdman recused himself from Item 6 due to a conflict of interest in real property within 500 -feet of the project. MISCELLANEOUS 7. Planning Commission Agenda for the January 19, 2017 Meeting [100-2016] Receive and file. Update on Water Use and Conservation Efforts November & December 2016 [100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Receive and file. 11. Initiate a Zoning Code Amendment Regarding Accessory Dwelling Units and Junior Accessory Dwelling Units [100-2016] a) Find that the action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3); and Volume 63 - Page 176 City of Newport Beach Regular Meeting January 24, 2017 b) Initiate an amendment to Section 20.48.200 and other affected sections of the Newport Beach Municipal Code to appropriately reflect recent legislation affecting Accessory Dwelling Units and Junior Accessory Dwelling Units. 12. Filming Planning Commission Meetings; Amendment to Council Policy A-13 [100-2016] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Direct staff to film Planning Commission meetings and make them available for viewing through the City's website; and c) Consider an amendment to City Council Policy A-13 regarding commissioner conduct at taped Planning Commission meetings and adopt Resolution No. 2017-10, A Resolution of the City Council of the City of Newport Beach, California, Amending City Council Policy A-13 Relating to Decorum and Order for City Commissions, Committees and Boards. Motion by Mayor Pro Tem Duffield, seconded by Council Member Dixon, to approve the Consent Calendar, except for Items 5, 9 and 10; and noting the recusal by Council Member Herdman on Item 6, and the incorporation of the City Manager's comments relative to Item 12. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon XIV. ITEM REMOVED FROM THE CONSENT CALENDAR 5. Resolution No. 2017-6: Implementing Improvements and Efficiencies in the City Attorney's Office [100-2016) City Attorney Harp presented a PowerPoint presentation to outline the proposal, history of the City Attorney's Office, reduction in costs, current and proposed office structure, possible fiscal impacts with change to personnel, possible future fiscal impacts, the reason for the change, and the net cost to the City. In response to Council Member Dixon's question, City Attorney Harp explained the proposed salary ranges. Council Member Dixon commended the City Attorney on his cost saving efforts. She requested the City Attorney and City Manager work together to retain the number of current full- time equivalent positions. In response to Council questions, City Attorney Harp discussed the use of outside counsel and net savings with personnel. He indicated that he was amenable to waiting to fill the third Deputy City Attorney position until there was another vacant position within the City. Motion by Council Member O'Neill, seconded by Council Member Peotter, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) adopt Resolution No. 2017-6, A Resolution of the City Council of the City of Newport Beach, California, Amending the Classification Plan, Salary Schedule, and Positions in the City Attorney's Office. In response to Mayor Muldoon's question, City Manager Kiff stated he would discuss position allocations with the Human Resources Department and anticipated the Deputy City Attorney position could be filled within three months. Volume 63 - Page 177 City of Newport Beach Regular Meeting January 24, 2017 Jim Mosher questioned whether the structure would result in increased settlement costs. He believed the City Charter was vague as to how the City Attorney's Office should be structured. He requested information on City Attorney offices in comparable cities. He suggested the organizational chart include all City Attorney Office employees. Mayor Muldoon indicated support for the proposal and commended City Attorney Harp on his work. Council Member O'Neill stated the trend in local government was to bring staff in-house rather than outsourcing. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro TemDuff' d, Mayor Muldoon 9. Harbor Commission 2017 Objectives [100-2016] Harbor Commission Chair Blank presented the 2017 objectives and proposed Council liaisons. Council Member Herdman stated he enjoyed the Harbor tour and appreciated the Commissioner's participation. Council Member Dixon stated the annual Harbor tour was time well spent and was well organized. In response to Council Member Dixon's question, Chair Blank stated the annual economic value of the Harbor to the City was $200 million. Council Member Avery discussed the importance of the Harbor and support by the City Council. He thanked the Harbor Commission for the report. Motion by Council Member Dixon, seconded by Mayor Muldoon, to a) determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) approve the Harbor Commission's 2017 Objectives. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon 10. Request by the Board of Library Trustees for an Exception to Council Policy A-5 (Fund Raising/Contracts by City Boards, Commissions, or Committees) [100-20161 City Manager Kiff presented the staff report. Council Member O'Neill believed this was a premature idea and suggested bringing this back at a study session for consideration. Council Member Dixon concurred with tabling the item, but indicated support for the Board of Library Trustees' fundraising concept. Council Member Avery indicated support for the plan, but agreed with the need for additional information. Volume 63 - Page 178 City of Newport Beach Regular Meeting January 24, 2017 Motion by Council Member Peotter, seconded by Council Member Herdman, to continue the item to a future City Council study session. Mayor Muldoon concurred with the need for additional information. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon XV. PUBLIC COMMENTS ON NON -AGENDA ITEMS Sue Dvorak expressed appreciation for the installation of signs around Corona del Mar High School and requested street sweeping signs be reinstalled. XVI. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Dixon provided an update on the Finance Committee and discussed the meeting at which the Finance Committee received an economic forecast. She stated their next meeting would be held February 16, 2017. Mayor Muldoon discussed his attendance at the U.S. Conference of Mayors. XVII. PUBLIC HEARINGS 13. Issuance of Multi -Family Housing Revenue Bonds for the Uptown Newport Project by the California Statewide Communities Development Authority to TPG/TSG Venture I Acquisition, LLC [100-20161 Finance Director Matusiewicz presented the staff report. Council Member O'Neill requested clarification that the City was not issuing any bonds. Finance Director Matusiewicz confirmed that the City would have no obligation to repay the bonds, simply to permit issuance within the jurisdiction. O Mayor Muldoon opened the public hearing. Jim Mosher expressed concern that no taxes were paid by the investors, and questioned public benefits and the development agreement. Hearing no further testimony, Mayor Muldoon closed the public hearing. In response to Mayor Muldoon's question, Finance Director Matusiewicz stated Mr. Mosher was referring to the developer fees, but explained that financing was not related to the agreement. He further explained that the City had to approve allowing tax exempt borrowing levied against the property owner. In response to Council Member Dixon's question, Finance Director Matusiewicz reported the City would not be responsible for default. Council Member Herdman asked what the incentive is of purchasing the bond. Finance Director Matusiewicz explained that interest would be non-taxable, therefore the investor would be willing to accept a lower interest rate and the developer would get a cheaper financing rate. Volume 63 - Page 179 City of Newport Beach Regular Meeting January 24, 2017 City Manager Kiff reminded the City Council of the public benefit of the project. In response to Council Member Avery's question, Finance Director Matusiewicz listed other projects where similar bonds were issued. Motion by Council Member Dixon, seconded by Mayor Pro Tem Duffield, to a) find this action is not subject to the California Environmental Quality Act (CEQA), pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; and b) adopt Resolution No. 2017-7, A Resolution of the City Council of the City of Newport Beach, California, Approving the Issuance by the California Statewide Communities Development Authority of Multi -Family Housing Revenue Bonds for the Uptown Newport IApartments and Upt n Newport HApartments. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffiel Nays: Mayor Muldoon 14. Local Coastal Program Amendment for the Lido House Hotel Floor Area Expansion, Located at 3300 Newport Boulevard and 475 32nd Street (PA2016-061) [100-20161 Community Development Director Brandt provided the staff report. Motion by Council Member Dixon, seconded by Council Member Herdman, to a) find that all significant environmental concerns for the proposed project have been addressed in previously certified environmental documents; and b) adopt Resolution No. 2017-8, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Submission of an Amendment to the City's Certified Local Coastal Program for the Lido House Hotel Project Located at 3300 Newport Boulevard and 475 32nd Street (PA2016-061). Mayor Muldoon opened the public hearing. Jim Mosher explained son he believed the size of the Lido House needed to be increased and discussed Greenlight provisions. Sherman Stacy, R.D. Olson Development, urged the City Council to approve the resolution. George Schroeder reminded the City Council that West Newport Beach residents supported the Lido House Hotel. Hearing no further testimony, Mayor Muldoon closed the public hearing. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon Volume 63 - Page 180 City of Newport Beach Regular Meeting January 24, 2017 15. Appeal of the Approval of the Village Inn Use Permit and Waiver of City Council Policy L-21 Located at 127 Marine Avenue (PA2015-016) [100-2016] In an abundance of caution, Council Member Herdman recused himself from this item due to his interest in real property near the property. Community Development Director Brandt introduced the proposed process. Deputy Community Development Director Wisneski presented a PowerPoint presentation, outlining City Council consideration items, vicinity map, zoning, site photographs of the Village Inn, application for CUP, floor plan, conditional use permit, outdoor dining, City Council Policy L-21 — Sidewalk Cafe Standards, bike corrals, existing regulations, Police Department calls for service, conditions of approval issued by the Planning Commission, the basis of appeal, and recommendations. Mike Sullivan, appellant, representing the Marine Avenue Homeowners Association, stated the Association was unanimously opposed to the application and pointed out that permanent structures were prohibited by City Council Policy L-6. He expressed concern about noise impacts and believed that a special privilege would be granted. Carol McDermott, representing the applicant, presented a PowerPoint presentation, including an aerial of Village Inn and surrounding uses, the importance of island history, project objectives, proposed outdoor dining plan, ADA access to outdoor dining, bike corrals, acoustical evaluation and analysis, responses to neighbors, and widespread support. She requested approval of outdoor dining and waiver of City Council Policy L-21..� Council Member Peotter suggested placing the outdoor seating on Park Avenue, instead of Marine Avenue. Public Works Director Webb presented the existing lane layout at the intersection of Park Avenue and Marine Avenue, and displayed an alternative. Council Member Peotter explained his proposal. Council Member Dixon asked if there would be outdoor dining on Marine Avenue. Council Member Peotter stated there would be some dining on Marine Avenue and the possibility of continuity with the existing sidewalk. He explained the location of the stage and suggested allowing flexibility. Council Member Peotter stated he had discussed the proposal with the appellant and applicant. Mr. Sullivan stated the Association liked the idea because it solved the noise concern. Council Member Dixon requested clarification on the Association's concerns about hours of operation and times for delivery trucks. Mr. Sullivan stated delivery hours had been violated in the past, but they were looking toward the future. He stated the hours of operation were not a concern if the outdoor dining was relocated to Park Avenue. He stated he would accept the applicant's word on efforts to control noise from performers. Ms. McDermott indicated an opening on the Marine Avenue side was necessary to access the outdoor dining. She believed Council Member Peotter's suggestion was not as efficient operationally, but welcomed the opportunity to move the bike racks and improve the outdoor appearance. Mayor Muldoon indicated support for moving all of the bike racks. Mr. Sullivan discussed the use of the bike racks during the summer. Public Works Director Webb stated staff favored having some bike racks by the Village Inn. He noted there may be site distance issues with the bike corrals. Volume 63 - Page 181 City of Newport Beach Regular Meeting January 24, 2017 Mr. Sullivan expressed concern with having a door on Marine Avenue, but suggested, if there were a door, it be a Dutch door. Ms. McDermott stated better sound attenuation would occur with a full door. In response to Council Member Peotter's question, Ms. McDermott discussed difficulty with servers utilizing a normal door. Mr. Sullivan requested a wide door not be used. In response to Mayor Muldoon's question, Deputy Community Development Director Wisneski stated staff had prepared language for the proposed compromise. Mayor Muldoon opened the public hearing. Jim Simpkins asked about the location of outdoor dining on Park Avenue. Council Member Peotter stated the public dining would start from the second door towards Marine Avenue. Don Abrams commended Council Member Peotter for theoposed compromise, but expressed concern with moving the bike corrals. Jay Truax suggested placing the bike corrals on side streets. He stated the sound would go towards the Fire Station. He discussed the need for ADA compliance. 1W Jim Mosher explained that the Planning Commission approved the idea for outdoor dining, provided the City Council waived associated policies. He stated that past practice had been for temporary sidewalk dining, not permanent installation. He asked how much the applicant would pay to use the public right-of-way. He agreed that bike racks should be accessible from the alleys. Dan Miller, Village Inn owner, requested flexibility to utilize brass instruments for live entertainment. He asked that they be allowed to remain open until 1:30 a.m. on New Year's Eve. Jack Callahan commended staff on the accurate report. He indicated support for expansion of the Village Inn. He suggested additional bike racks be placed all over Balboa Island. Jari Appelroth provided historical background about noise from the Village Inn and indicated it was currently quiet and family-oriented. He questioned the length of time staff is proposing to move the bike rack. He suggested referring to the Village Inn as a family restaurant rather than sports bar. He urged the City Council to approve the application. Brenton Roger Ogden III asked if the existing doors would remain. Council Member Peotter explained that the doors and windows would be replaced. Mr. Ogden expressed concern about noise impacts. He stated the area was historically a beer garden, but the area's image needed to be improved. Tommy Crosson urged the City Council to approve the application. Hearing no further testimony, Mayor Muldoon closed the public hearing. Mayor Pro Tem Duffield applauded Council Member Peotter for his suggested design and believed it was a more logical expansion. He expressed support for the compromise. Council Member Peotter suggested installing enhanced landscaping at the corner. Mr. Miller stated they were willing to compromise some of the visibility, but still needed to maximize the operation. He stated they would continue to look for ways to beautify the space and reported that he was comfortable with the proposed compromise. Council Member Peotter suggested deliveries be allowed after 7:00 a.m. Volume 63 - Page 182 City of Newport Beach Regular Meeting January 24, 2017 Council Member Dixon complimented Council Member Peotter, the applicant, appellant, and residents for the compromise. Council Member Avery asked if Memorandum No. 3 was already agreed upon. He expressed concern regarding the use of drums and bass sets. Mr. Miller requested the opportunity to retain flexibility on the types of instruments, while acknowledging the noise ordinance and conditions. Mr. Sullivan indicated that his objection was to music that penetrated through his walls. Council Member Avery stated he was pleased with the proposed compromise. Deputy Community Development Director Wisneski reviewed the proposed changes to the conditions. She suggested allowing flexibility in the type of doors, landscaping and patio elevation. She stated a resolution would be brought back to allow the City Council to review the changes. Motion by Mayor Muldoon, seconded by Council Member Peotter, to incorporate what staff summarized and bring back the resolution on the Consent Calendar at the February 14, 2017 City Council meeting. The motion carried by the following roll call vote: Ayes: Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon Recused: Council Member Herdman 1* XVIII. MOTION FOR RECONSIDERATION - None XIX. ADJOURNMENT - 9:47 p.m. The agenda was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on January 19, 2017, at 4:00 p.m. City Clerk Mayor Volume 63 - Page 183